Sui Foundation Sits Out $162M Vote: Cetus Hack Fallout

Blockchain Braces for Governance Showdown

Hold onto your hats, crypto fans! The Sui Foundation just dropped a bombshell—they're sitting out the upcoming vote on whether to recover a whopping $162 million in frozen funds from the Cetus protocol hack. That's right, they're leaving it all up to the community!

Validators' Swift Action Freezes Stolen Assets

The blockchain network is gearing up for a high-stakes on-chain governance vote to decide if they should roll out a protocol upgrade to claw back those funds. Talk about drama!

After Sui (SUI) validators sprang into action on Wednesday to freeze the stolen loot, Cetus stepped up and asked the community to greenlight a protocol upgrade. This move would let them return the locked funds without messing with the transaction history or hitting the rewind button on the blockchain.

Emergency Measures Halt Further Losses

When the Cetus hack went down, the Sui validator network didn't mess around. They slammed on the brakes with emergency measures to stop the bleeding. Over a third of validators, based on their stake weight, gave the cold shoulder to transactions from two addresses linked to the attack. Boom! That move locked down about $162 million in digital assets, leaving the hacker high and dry.

Here's how they pulled it off: Each validator has a sneaky config file that lets them ignore transactions from specific addresses. Adding addresses to this file? Totally up to them.

Validators' Quick Thinking Saves the Day

These validators aren't just sitting pretty—they've got the power to freeze out specific addresses through their config files. It's all about individual risk assessments and compliance requirements. They can flip the switch on or off, no questions asked.

While the validators managed to keep the attacker from skipping town with a big chunk of the stolen funds, about $60 million had already slipped through their fingers before the freeze kicked in. But don't worry, Cetus is working with Inca Digital, security gurus, and international law enforcement to chase down the rest of the loot.

Sui Foundation's Conditions for Neutrality

The Sui Foundation laid down two conditions for supporting this wild community vote. First, they're staying neutral—no skin in the game for them. They're just here to help, not to call the shots. Second, Cetus has to pinky-swear to throw all their cash at making their customers whole again.

"This is a crazy request for a crazy situation—Cetus's customer funds are on the line," the Sui Foundation declared. And Cetus? They're ready to roll with whatever the community decides.

Community Vote to Decide Cetus's Fate

"No one can make this call solo," they said. The protocol upgrade vote is going to be a big deal, with validators and SUI token stakers all getting a say. And get this—Cetus even put up a $6 million bounty to sweeten the deal for the hacker to cough up the funds.